Tag Archives: Forbes
Two business school professors have discovered that CEOs who win awards from business magazines tend to underperform their peers.
Elizabeth O’Sullivan from Corporate Board Member writes, “Thatâ€™s the word from two professors who studied the performance of CEOs presented with accolades by the likes of BusinessWeek, Chief Executive, Forbes, IndustryWeek, Time/CNN, and Electronic Business Magazine. Looking at the period from 1975 to 2002, Ulrike M. Malmendier of the University of California at Berkeley and Geoffrey Tate of UCLAâ€™s Anderson School of Management found that during the three years following an award the companies headed by a significant number of these CEOs experienced a decline in both stock price and earnings. Were the CEOs just victims of weakening economies or beleaguered industries? Not at all. They also performed less well than their non-prizewinning peers in the same businesses.
“Malmendier and Tate cite several contributing factors, including increased demands on the CEOsâ€™ time. Some were pressed to serve as board members, others urged to write books. Meanwhile, they may also have been devoting just a bit more time to golf. Prizewinners, on average, had lower golf handicaps than their awardless counterparts, according to the report.
“Rubbing more salt into the wound, CEOs who won media praise took their press clippings to heart â€” and the bank. This translated into demands for fatter compensation packages than other companies meted out to CEOs who did a better job â€” but did it under the media radar.”
Read more here.
Betsy Corcoran, the executive editor of technology for Forbes magazine, is leaving to start a company that will aim to bring more technology into classrooms, writes Ryan Tate of Gawker.
Tate writes, “She tells us her departure is ‘really and truly about my passion for education and technology’Â â€” and not the relentless rounds of layoffs at her magazine.”
Corcoran is an award-winning journalist who joined Forbes as the magazine’s Silicon Valley bureau chief in 1999 and became a contributing editor in 2002. Previously Corcoran was a staff writer for The Washington Post. She joined the newspaper in 1994 and did award-winning coverage of the Microsoft antitrust case from Washington before establishing the paper’s Silicon Valley office.
Prior to joining The Washington Post, Corcoran was a fellow in the Knight Science Journalism program at the Massachusetts Institute of Technology and served as a member of the Board of Editors of Scientific American. At Scientific American, she created and wrote a news section, essays on economics and a number of cover stories for the magazine.
Read more here.
Eddy Elfenbein, writing on Crossing Wall Street, gives Forbes magazine his economic illiteracy prize for comparing the net worth of the richest individuals to the gross domestic product of countries.
Gross domestic product (GDP) is the market value of all final goods and services produced within a country in a given period of time.
“In other words, net worth = stuff you have; GDP = stuff you make. Itâ€™s like confusing the price of the stock with its earnings.
“The net worth of a country is far larger than what it produces in a single year. Not only is Costa Rica wealthier than Bill Gates, itâ€™s a lot wealthier. Furthermore, the comparison between a western billionaire to a developing country is heavily skewed due to the Penn Effect.”
Read more here.
Michael Smith has been named president of Forbes.com, according to a memo obtained by ClickZ News.
Anna Maria Virzi writes, “Smith, who came to Forbes.com in 2000 as chief technology officer, rose through the ranks at the business Web site. ‘In his new role, Mike will have responsibility for all aspects of the operational management of Forbes.com. In this capacity, he also will have responsibility for Forbes.com Business & Finance Blog Network and ForbesTraveler.com,” according to an all-hands company memo from Steve Forbes, the magazine’s editor-in-chief.
“Before Forbes, Smith was chief information officer at TheStreet.com, another business Web site.
“The move comes just as Forbes.com CEO Jim Spanfeller steps down. Spanfeller said in July he would be leaving to to launch his own digital media startup.”
Read more here.
Bercovici writes, “‘BusinessWeek has faced what a lot of us have faced, but they’ve faced it more severely,’ he said. ‘It’s a storm that has spared no one. Rather than buying up others, we’ve been focusing on how do we refit ourselves for this new era. Thankfully we went very heavily into the internet and put a lot of resources on it seven or eight years ago when everyone else putting theirs in deep freeze.’
“I also asked Forbes if he foresees his namesake magazine switching its website from an all-free model to one where readers would have to pay to access some or all content.
“‘I think what you’re going to see is a whole slew of people trying various things,’ he said. ‘There’s certain content, specialty content, where that might work. We do it with some of our letters. We’ll have to see how what they call microprocessing, where you’d pay half a penny for an article, how that might work.’ (I’m pretty sure he meant micropayments.)”
Read more here.
Forbes.com announced Tuesday that it is launching four new shows on its online network.
“We’re pleased to add these new shows to the Forbes Video lineup, which we continue to grow and enhance with new programs and technologies on a regular basis,” said Mia Haugen, Forbes managing editor, in a statement. “As we mark the one-year anniversary of the global financial crisis, weâ€™re especially pleased to introduce forward-looking content that highlights the best in business, while celebrating innovations and new ideas.”
â€œSuccess with Moira Forbesâ€ is a weekly show featuring interviews between Moira Forbes and the worldâ€™s most accomplished women. Forbes oversees ForbesWoman, the magazine and Web site dedicated to career-minded women. The series begins with an interview with Arianna Huffington, founder of The Huffington Post, who shares her thoughts on the impact of online journalism, the evolution of citizen journalism, and work-life balance, among other topics. For a preview, go to:
â€œForbes Executive Travel,â€ hosted by Evelyn Rusli, will help businesses and business travelers navigate the best routes, find the smartest deals, and make sound decisions for a better time on the road. The series takes off with insight and advice from high-fliers in the fashion business.
â€œDrivenâ€ explores the intersection of youth, power, fame and wealth, featuring business leaders, entrepreneurs, legacy children and top names in entertainment and philanthropy, all under 40, who are becoming prominent power players in their respective fields. The show will look at what drives these individuals and how they plan to accomplish their ultimate goals. Hosted by Evelyn Rusli, â€œDrivenâ€ debuts with a face-to-face interview with Twitter CEO Evan Williams.
â€œForbes Value Factor,â€ hosted by Camilla Webster, explores where opportunities lie in business and life that provide individuals and communities with long-term value â€“- as consumers demand more for less and businesses are responding with innovative offers, services and ideas. An example: the fall of Lehman Brothers could have meant catastrophe for thousands of female employees at the bank. In this first installment, Webster looks at how one year later Lehmanâ€™s women are using their network, â€œWILLpower,â€ to leverage their value on Wall Street.
Forbes.com announced Monday that it has launched an application for the Palm webOS platform, available now in the Palm app catalog on the Palm Pre phone.
The app delivers news, analysis and opinion, as well as stock market updates to Palm Pre phones.Â Â
Users have free access to the latest Forbes.com content, including news from the home page and the site’s editorial channels — Markets, Business, Personal Finance, Entrepreneurs, Technology, Forbes Life, Opinions and Leadership — plus news from the CMO Network, Intelligent Investing and ForbesWoman sections.
Other features include:
- A customizable â€œMy Stocksâ€ area to track stocks and indexes;
- A â€œprepare for offlineâ€ function to download articles for offline reading;
- Most e-mailed and most popular stories;
- Integrated e-mail and social sharing services, including Facebook, Yahoo! Buzz, Digg, and Redditt.
“Professionals are increasingly relying on their mobile devices to keep them up-to-date with business and financial news, and the Palm Pre phoneâ€™s capabilities make it an excellent tool for the mobile executive and entrepreneur,” said Jeff Bauer, product and creative director, Forbes, in a statement. “The Forbes.com app for Palm webOS is the first application to deliver deep business content for this platform, and we expect it to solve a core business need.”
Minyanville announced Monday the hiring of Josh Lipton as a staff writer covering business and the markets and named Jonathan Schwartz as vice president of business and product development.
“With the explosive growth we have been experiencing we needed to add capacity in both content creation and business development,” said Todd Harrison, Minyanville’s founder and CEO, in a statement. “Josh and Jon will both be key to helping us maintain the momentum we have been building.”
Minyanville has seen a surge in trafficÂ during the last six months, surpassing 1.5 million unique visitors and 10 million page views in July. It has recently expanded its content partnerships to include The Huffington Post.
Before joining Minyanville, Lipton most recently was a staff writer at Forbes.com, where he covered stock market activity and trends. Prior to that he was an assistant editor at The American Lawyer. His articles have also appeared in Rolling Stone magazine, New York magazine, and The Wall Street Journal, among other publications. He is a graduate of Colgate University and received a dual Masters from The London School of Economics and The Columbia University School of Journalism
Schwartz, who joined Minyanville in 2005, will be responsible for managing strategic alliances and developing digital strategy. In his prior role as executive producer he helped secure many of Minyanville’s content partnerships including Internet portals AOL, MSN and Yahoo. He has also managed the development of Minyanville.com and its Buzz & Banter application. Before joining Minyanville he spent 2 years at Forbes Media where among other duties he hosted the “Week Ahead in Markets” weekly video series. A graduate of Boston University, he also served as a strategy analyst at Deloitte & Touche.
Read more here.
TALKING BIZ NEWS EXCLUSIVE
A lot had been written and said in the past two weeks about BusinessWeek, which has been put up for sale by its parent company, McGraw-Hill.
Some have even predicted that the company will be unable to sell the money-losing weekly and will end up closing it.
Here’s five reasons why I think it will not close and will be one of the survivors:
1. The top editors have been proactive in trying new strategies. While some people have criticized editor Stephen Adler, he does recognize that the industry is undergoing a dramatic change and has been reacting to that. Plus, he’s got John Byrne as his right-hand man. Byrne has been one of the most innovative people in online business journalism in the past decade. Yes, Adler has made mistakes. But at least he’s willing to try new things. I look at Forbes and Fortune and see too much that reminds me of the 1990s.
2. The magazine’s Web site doesn’t just replicate what’s in print. Yeah, sure, a lot of business magazines put extra content on their site, but BusinessWeek puts more than anyone else, I’d be willing to bet. Its blogs are outstanding, with tons of insights and analysis about industries. It breaks news online as well.
3. Speaking of industries, despite the fact that BusinessWeek has shrunk in the past five years, the core strengths of the publication remain, and they remain strong. The company, technology and finance coverage — the strength of Businessweek for the past 20 years — still brings more to business news junkies every week than any other magazine. The personal finance section is much better than what I see in Forbes and Fortune too.
4. No one in the magazine business does U.S. economics coverage like BusinessWeek. From the columnists to staffers Michael Mandel and Peter Coy, the coverage is prescient and accessible, unlike U.S. economics reporting in, say, The Economist.
5. The brand name. BusinessWeek means authority to a certain type of business reader. It doesn’t scream “celebrity CEO” like Fortune or “mega-rich” like Forbes. It’s an understanding of how the business world works and what that means to people who care about business.
BusinessWeek’s problems are not unique. To get better financially, I’d like to see it start charging for some of its online content, particularly the exclusive stuff.
DISCLOSURE: I worked at BusinessWeek from March 1993 to November 1994 in its Connecticut bureau and remain in touch with a number of staffers, including Byrne and Coy.
The Business Insider has compiled a list of what it deems the “sexiest business reporters alive.”
Here is the top 10, with the site’s comment:
1. David Faber of CNBC: It’s called ‘The Faber Report.” Need we say more?
2. Margaret Brennan of Bloomberg TV: Nice catch, Margaret! Nice catch, Bloomberg!
3. Andrew Ross Sorkin of the New York Times: Dreamy.
4. Victoria Murphy Barret of Forbes: Even people who haven’t worked at Forbes for years still talk about her.
5. Julia Boorstin of CNBC: Lovely and smart never goes out of style.
6. Alexis Glick of Fox Business Network: Absolutely fabulous.
7. Diana Olick of CNBC: One benefit of the housing collapse: More Diana.
8. Joe Kernen of CNBC: Unpretentious, consistent, knowledgeable, polite. Always a pleasure.
9. Kate Kelly of The Wall Street Journal: Sharp, articulate, aggressive…and cute as a button.
10. Mark Haines of CNBC: Not your typical pin-up. But funny! Funny is always sexy.
The rest can be found here.